Meeting Financial Products CRM 7 0 13-08-09

SAP CRM 7.0FS Products

SAP CRM 7.0FS Products

© SAP 2007 /

1. Products Overview

2. FS Products

3. Appendix

Agenda

Maintaining Products

© SAP 2007 /

Inactive Product Data

© SAP 2007 /

Relationships

© SAP 2007 /

Hierarchies and Categories

© SAP 2007 /

Enhancing the Product Master: Overview

© SAP 2007 /

© SAP 2007 /


2. FS Products

3. Appendix

Agenda

SAP AG 2006

Financial Service Product (FS Product)

Product Concept and FS-Specific Data

Mapping Products and Settings in Back-End Systems

Enhancement Concept

Content:

SAP AG 2006

Financial Service Product Configuration

Product hierarchy

Product

is assigned to

Salesorganization

Distributionchannel

is enabled for

Condition set1

Condition set2

Condition set3

has variants

Collateraltype

needs

is allowed for

Special agreementA

Special agreementB

CRM is used to designsales and marketingproducts with aminimum set ofattributes. Attributesand value ranges canbe predefined.

The back-end systemsare responsible for thesettlement of productswith all the attributesrequired for servicing.

CRM can handlesingle products andproduct bundles.

SAP AG 2006

Products in Financial Services

The field of financial services comprises a variety of potentialproducts including:

Loans (consumer, mortgage, etc.)Cards (credit, debit, etc.)Accounts (current/checking, savings, etc.)Insurance (car, life, debt, etc.)Brokerage (shares, securities, etc.)

In addition, there are elements that are not to be sold individuallybut are needed as part of a valid contract as:

Objects (for example, real estate or cars): To collateralize the contract or asobjects to be financedCollateral objects (for example, real estate): To collateralize the contractCollateral agreements: To indicate the entitlements to the asset, how thecollateral value is calculated, and specify the purpose of declaration

SAP AG 2006

SAP Product – General Architecture

Attributes

Set type

Category

Hierarchy

Producttype

SAP product architecture is a flexible approach to creating andmaintaining product master data. To map all your products, an easyenhancement concept is provided.

Attributes: Product characteristics

Set types: Semantic grouping of application-specific attributes

Category: Specifies which set types are allowedfor a product; set types are assigned to categories

Hierarchy: Hierarchical relationships betweencategories

Product type: General classification of productsthat describes their basic characteristics

SAP AG 2006

Financial Service

Product Type: 07 Financial Service

Collateral objects or financed objects, such as real estate, arecreated as product type 01 (Material).

Mortgageloan

Consumerloan

Credit card

Giro card

Carinsurance

Travelinsurance

Homeownerinsurance

Savingsproduct

Collateralagreement

The product type 07 (Financial Service) comprises the products inthe financial services area. Each specific product is linked to aproduct category.

Realestate Ship Aircraft Vehicles

Material

SAP AG 2006

Product Hierarchies Required for Account Origination

Base hierarchy for financial service products:• Main hierarchy for defining financial service products• Also used to define collateral agreements and

product bundlesCreated by an SAP report

Process hierarchy for financial service products:• Hierarchy for defining process-dependent

categoriesCreated by an SAP report

Base hierarchy for materials:• Used in account origination for collateral objects

and financed objectsUploaded from SAP ERP or created manually; youcreate the categories for account origination (realestate) manually

SAP AG 2006

Categories

BASE_FSFinancial Services

BASE_FSFinancial Services

BASE_FS_INSInsurance

BASE_FS_ACCEquity Contributions

BASE_FS_LOANLoan

BASE_FS_BNDLProduct Bundle

BASE_FS_INS01Life & Pension

BASE_FS_INS02Property & Casualty

BASE_FS_ACC01Checking AccountsBASE_FS_ACC02Savings Deposits

BASE_FS_COLLCollateral Agreement

BASE_FS_LOAN01Consumer Loans

BASE_FS_LOAN02Mortgage Loan

BASE_FS_LOAN03Facilities

BASE_FS_LOAN04Account Overdrafts

BASE _FS_COLL01Collateral Agreement

Base Hierarchy for Financial Service Products

Hierarchy

Category is fully integrated in theorigination process.

A hierarchy consists of categories.The base hierarchy comprises thecategories relevant for financialservice products.Categories in the hierarchy definethe attributes relevant for products.A product is assigned to oneproduct category.You can extend the base hierarchycreated by the report, for exampleyou can add subhierarchies.Lower-level categories inherit theset types of the higher-levelcategory.

SAP AG 2006

Creating FS Products: Loans

Product: Create Financial Service Consumer Loan

Mortgage Loan

The following standard set types apply to all product types and categories:

Description (COMM_PR_SHTEXT): Product description.Units of Measure (COMM_PR_UNIT): Base unit of measure, alternative units ofmeasure, and the corresponding conversion factors.Sales: Control Fields, Quantities (CRMM_PR_BTR): Sales data for a product.Sales: Groupings (CRMM_PR_SALESG): Grouping of products.

SAP AG 2006

Creating FS Products: Set Types for Loans I

Age of ApplicantAge group for aproduct.

Interest and PaymentsSettings for interestcalculation and loandisbursement.

Discount/PremiumSpecifies when the loandiscount or partialpayment is calculatedand credited to thecustomer.

Minimum Age 019

Maximum Age 027

Effective Interest Clearing Frequency inMonths

00

Effective Interest Method 1

Number of Partial Payments 2

Minimum Time Without Repayments 1 month

Maximum Time Without Repayments 3 months

Discount/Premium 1 Proportional per PartialDisbursement

Basic Data

SAP AG 2006

Creating FS Products: Set Types for Loans II

TermThe possible terms of afinancial service product.

Fixed Interest PeriodIndicates how long a fixedinterest rate is guaranteedfor customers.

Term Term To Time Unit Default

012 060 Months

024 000 Months

Term

Interest Lock Time Unit Default

005 Years

010 Years

Fixed Interest Period

SAP AG 2006

Creating FS Products: Set Types for Loans III

Payment StructureIndicates the periods and one-time inflows and outflows of loan amounts. From afinancial mathematics point of view, the payment structure has the character of acondition, and is the basis for determining the payment schedule in the businesstransaction.

Flow Category Date Rule From Date Rule To Payt Frequency Ref. InterestProfile Default

Loan Amount Contract Start

AnnuityRepayment Contract Start Monthly in Arrears

Interest Contract Start Monthly at End of Period

One-Time Fee(Fixed Amount)

Contract Start

Payment Structure

SAP AG 2006

Creating FS Products: Set Types for Loans IV

UsageUsage Short Text

01 Construction Financing

02 Purchase Real Estate

06 Policy Loan

Special ArrangementsSpecial Arrangements Description0001 Extended Commitment Period

0003 Special Repayment Agreement

Special ArrangementsArrangements that can bemade with the customer forthe financial serviceproduct.

UsageThe possible uses for aloan.

Agreements

SAP AG 2006

Creating FS Products: Collateral Agreement

Agreement TypeSpecifies the type of collateral agreement, such asreal estate lien or certified land charge.

Product: Create Financial Service Collateral Agreement

Agreement Type Short Text

010100 Certificated Land Charge

090600 Guarantee of Payment

Agreement Type

SAP AG 2006

Creating a Real Estate Product: Material

Object TypeSpecifies the type of real estate.

Object Type Short Text

010001 Single Family House

030020 Apartment and CommercialBuilding

010004 Townhouse

Real Estate Data

Product: Create Material Real Estate

SAP AG 2006

Product Bundling – The Concept

A product bundle represents a set of products that are sold togetherwithin a single contract. Product bundles can be used for

Marketing Reasons (promotions etc.)Process Optimization

They will therefore only be designed in CRM.

Product bundle „Mortgage Loan“

Real Estate

Mortgage Loan

Fire Insurance

Collateral Agreement

SAPCRM

Product used to groupseveral items, CRMonly

Loans Management(SAP or legacy)

Policy Management(SAP or legacy)

Collateral Management(SAP or legacy)The underlying physicalproduct to be financed,not necessary in all cases

SAP AG 2006

Product Bundling – Further Examples

Premium PropertyFinancing Package

Mortgage LoanCredit InsurancePersonal Belongings Insur.Fire Insurance

Ban

king

Basic CheckingAccount Package

Checking AccountCredit CardInternet Banking Service

Ban

king

Young familyStarter Insurances

Home Owner InsuranceLife InsuranceDisability InsuranceCar Insurance

Insu

ranc

e

Credit Card “Sports”

Ban

king

Credit CardSports Accident InsuranceFormula One TicketsTravel Booking Services

SAP AG 2006

Creating a Product Bundle: Relationships

Product bundle:

FS_COLLAGREE02

FS_MORTGLOAN01

FS_REALESTATE01

Settings in product master

In FSquotation

Product Bundle

Product ID ValidFrom

Valid To Mandatory Default Grouping SortSequence

ProductType

FS_COLLAGREE02 Coll_Agree 0000 FinServFS_MORTGLOAN03 Mortgage 0000 FinServFS_MORTGLOAN01 Mortgage 0100 FinServFS_MORTGLOAN02 Mortgage 0200 FinServFS_COLLAGREE01 Coll_Agree 0300 FinServFS_REALESTATE01 0400 Material

Relationships

SAP AG 2006

Specifying Product Relationships (Interlinkages)

You use different relationship types to describe the differentmeanings of a relationship to which attributes can be assigned.

Examples of product relationships:Mortgage loan and collateral agreementConsumer loan and residual debt insurance

The system transfer relationships to the quotation. It mapsrelationships as item relationships.

To map a business dependency, you can link aproduct to:

Another productAn object (for example, an individual

object)A product category (FS relationship)

SAP AG 2006

Creating an FS Relationship

You can only enter FS relationships for product type 07 (FSProduct).

You can link one FS product to several categories for differentpurposes.

FS RelationshipCategory ID Hierarchy ID Description Purpose Short

DescriptionProduct Type

BASE_FS_LOAN BASE_FS Loans 0000000001 Extent ofCollateral

FinServ

MAT_REALESTATE BASE_MAT Real EstateProperty

0000000002 CollateralCharges

Material

Relationships

SAP AG 2006

Example: Collateral Constellation

Elements of a collateral constellation that you map using relationships:

Collateral charge: Determines the amount by which the asset (object) is debitedby the collateral agreement.

Mapped as an FS relationship with the purpose Collateral Charge.

Collateral scope: Defines the scope of collateral for the receivables assigned toa collateral agreement.

Mapped as an FS relationship with the purpose Collateral Scope.

Mappingusingrelationships

Mappingusingproducts

Object(Real Estate)

Collateralagreement

Receivable(loan)

Charge Scope

SAP AG 2006

Financial Service Product



Enhancement Concept

Content:

SAP AG 2006

Mapping Products Between CRM and the Loans Back-EndSystem

In CRM, you create the sales andmarketing view of products. You cannotusually use these products in anoperational context.

CRM: Sales and marketingproducts (minimum set of attributes).

Back-end system: Settlementproducts (all attributes necessary forservicing).

Mapping CRM products to productsin back-end system.

PRODUCT 123

Attribute

AttributeAttribute

CRM

Loans Management

PRODUCT ABC

Attribute

Attribute Attribute

Sales/marketing attributesAttribute

AttributeAttribute

MAPPING

SAP AG 2006

Mapping Products Between CRM and the SAP Loans Back-End System

Derivation strategyDefines derivation steps and places these in sequence.

Derivation Rule per Derivation StepDefines a field or a combination of fields from the CRM system (source fields)that the system is to use to determine the field to be derived in ContractManagement (target fields).

Rule Entries per Derivation RuleDefines field values for the fields for the derivation rule.

Settlementproduct 1

Settlementproduct 2

Derivation

CRM ProductA

CRM ProductB Product 2

Derivation rule XX

Derivation rule YY

CRM Contract Management

Product A Product 1

Product B

SAP AG 2006

Mapping Between CRM and Collateral Management

To search for existing collateral objects orcreate collateral constellations, SAP CRMexchanges data with the connectedcollateral management system. There aretwo ways of exchanging data:

In SAP CRM, you use exactly the sameCustomizing settings for real estate itemsand collateral agreements as in theconnected collateral management system.

You use different Customizing settingsfor real estate items and collateralagreements in SAP CRM and collateralmanagement. In this case, you must usethe mapping function provided by theorigination scenario in the SAPNetWeaver Exchange Infrastructure (SAPXI).

SAP CRM AccountOrigination

CollateralManagement

Send_RealEstate_Query

Receive_RealEstate_Query.

Send_CollateralConstellationCreateRequest

Receive_CollateralConstellationCreateRequest

Send_CollateralConstellationCreateConfirmation

Receive_CollateralConstellationCreateConfirmation

EX

CH

AN

GE

INFR

AS

TR

UC

TU

RE

SAP AG 2006

Financial Service Product



Enhancement Concept

Content:

SAP AG 2006

Therefore, to map your specific product range you needadditional attributes to those delivered by SAP.

These attributes must be included in the master data for theproducts as well as in the FS quotation.

Why Do We Need an Enhancement Concept?

Account

Limits

Standing orders

Holds

A wide variety of different products exist in the financial servicesenvironment, including:

Loans

Accounts

Credit cards

Insurance

Loan

Payment schedule

Interest/payments

Fixed interest period

SAP AG 2006

XI

Enhancement Concept: How to Proceed?

1. Create new attributes for products and group themtogether logically into set types.

2. Assign set types to product categories for use in theproduct master.

3. Integrate set types into business transactions (FSquotation) via the Easy Enhancement

Workbench (EEW) / Advanced EnhancementTool (AET) for CRM 7.0.

4. Integrate the newly created business transactioncomponent into the user interface. (will be done

automatically using the AET in CRM 7.0)

5. Enhance the appropriate SAP XI interfaces manuallyto enable the distribution of new fields to back-end

systems via the SAP NetWeaver ExchangeInfrastructure. Then implement the appropriate

mapping methods on both the sender and receiverside.

Set type

Productcategory

FS quotationenhancement

SAP AG 2006

Easy Enhancement Workbench for Business Transactions

Adding new components to the data model of the businesstransaction and integrating them into the businessprocesses.

The new component fields are integrated into the businesstransaction and you can use them immediately in thebusiness transaction.

For example, the newly generated components areautomatically integrated into:

Interaction layers

Engineering Change Management (ECM)

Archiving

Business documents

Event handling

Copying logic and checks

Pricing

Addingcomponents

Integration

SAP AG 2006

Set Type: Product Master - Generated One Order Objects

Flat (form) Flat

Multi-value attributeMulti-value attribute prefilled by

settings in product master

Multi-line set type

Flat attribute and input help dependson value defined in the product master

Multi-line and prefilled by settings inthe product master

Set type independent from theproduct master

Multi-value attribute

Product Master One Order Object (EEW)

© SAP 2007 /

Account Origination Architecture – BussinessView

Integration Layer BusinessProcess

Management

ServicesRepositoryMapping

Maintenance and Administration*

Contracts Collaterals

Contract

BillingConditions(transactional)

FinancedObject

(Underlying)

CollateralAgreement

BusinessPartner

CalculationServices

(Simulation)

Product(settlement)

CollateralObject

CalculationServices

(Simulation)

…

Create CollateralConstellation

Create Contract

…

Common Services*

Credit RiskCalculation

Credit Report& Rating

ScoringCalculation Reporting

*SAP or Non-SAPServices ObjectsLegend:

Account OriginationCase Management

BusinessPartner

Sales Product(incl. Bundle)

Collateral(Offer)

Conditions(sales)

TotalCommitment

Opportunity

FinancedObject(Offer)

Campaign

Basic ValueCalculation

LeadOffer

Offer

BusinessPartner

CollateralObject(Offer) Business

Rules

Workflow

Checklists

Documentse.g. Financial

Statement

CollateralAgreement

(Offer)

© SAP 2007 /

Account Origination Architecture –Technology View - I

FS Product: Productbundle

Material: Real estate

Business Rule Framework

FS Produkct:Mortgage loan

FS Product:Consumer loan

FS product:Collateral agreement

Business partnerfor FinancialServices (FS)

Collateral Management

Loans Management

Creation of mortgage loancontract

Creation of consumerloan contract

Payment plan calculation

Plausibility checks

Creation of collateralconstellation

Find collateral objects/agreements

Credit Management

Business partner scoringincl. external ratings

Creation of businesspartner and customer

OPPORTUNITY

CASE

CRM

•Collateral object

• Collateralagreement

• Consumer loan

• Mortgage loan

• Product bundle(split into componentsduring distribution)

Items, such as:

FS quotation

Business partnerFor FS

Business partner creation

Business partner creation

XI Server/Middleware

Total commitment

© SAP 2007 /

Account Origination Architecture –Technology View - II

SAPCRM

CMLSAP ERP

Send CreditWorthinessQuery

Send RealEstate Query

Send LoanCalculationQuery

Send CollateralConstellationCreate Request

Send LoanContract CreateRequest

ReceiveCollateralConstellationCreateConfirmation

Receive LoanContract CreateConfirmation

SAPFSCM

CMSSAP ERP

Receive CreditWorthinessQuery

Receive RealEstate Query

ReceiveCollateralConstellationCreate Request

Send CollateralConstellationCreateConfirmation

Receive LoanContract CreateConfirmation

Receive LoanCalculationQuery

Receive LoanContract CreateRequest

Send LoanContract CreateConfirmation

© SAP 2007 /

Flexible Rule Framework

A rule framework supports the origination process in several ways:Plausibility and consistency checksProduct, bundle dependencies, default values, …Status controlWorkflow integrationStart of actions

The rules can flexibly be enhanced according to specific needs.

Rules are implemented customer-specific and modification free.

© SAP 2007 /

Example Business Rule: ‘Missing Document’

When Quotation status is set to ‘released’, check if document is missing.If so, reset status to ‘to be checked’ and alert user.

‚document is missing‘

Quotation status changed to ‘released’

Set status to ‘to be checked’and alert user

Actions

ProcuringExpression

ProcuringExpression

RuleRule

RuleRule

CalculatingExpression

ProcuringExpression

CalculatingExpression

ActionAction

ActionAction

Event

© SAP 2007 /

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Meeting Financial Products CRM 7 0 13-08-09

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